Download this article as a PDF.
The COVID-19 pandemic continues to be a source of great financial hardship for many Canadians. In response, the Government of Canada has, and continues to provide a variety of benefits to both Canadian individuals and businesses to help support them financially through this difficult period.
Here is a summary of the most popular COVID-19 benefits, their purpose and amount, and which benefits are taxable income receipts, and which are not.
For a complete listing, including provincial support, click here.
Individual COVID-19 Benefits
Canada Emergency Recovery Benefit (CERB)
| Purpose & Benefit Amount | Taxable Income Receipt? |
|---|---|
| • Benefits employed/self-employed Canadians who had to stop working due to COVID-19. • $2,000/4-week period, for a maximum of 28 weeks between March 15, 2020, and September 26, 2020. • Visit Canada.ca for further details on CERB eligibility criteria. | • Yes, taxed as regular income • No tax withheld at source • The government will issue a T4A tax slip or T4E tax slip (if applied through Service Canada) reporting benefits received |
Canada Child Benefit (CCB) Top-up
| Purpose & Benefit Amount | Taxable Income Receipt? |
|---|---|
| • One-time increase to the May 2020 CCB to those Canadian families already receiving CCB. The one-time payment essentially doubled the monthly allocation per child. | • No, CCB is not a taxable income receipt |
Special Goods and Services Tax (GST) Top-up
| Purpose & Benefit Amount | Taxable Income Receipt? |
|---|---|
| • One-time increase to the April 2020 GST credit to those Canadians already receiving the GST credit. | • No, GST credit is not a taxable income receipt |
One-time tax-free payment for Old Age Security (OAS) and Guaranteed Income Supplement (GIS)
| Purpose & Benefit Amount | Taxable Income Receipt? |
|---|---|
| • One-time tax-free payment in July 2020 of $300 for Canadian seniors eligible for OAS, with an additional $200 for Canadian seniors eligible for GIS. | • Normally OAS is a taxable income receipt, but this one-time payment is not a taxable income receipt • No, GIS is not a taxable income receipt |
Canada Emergency Student Benefit (CESB)
| Purpose & Benefit Amount | Taxable Income Receipt? |
|---|---|
| • Benefits post-secondary students, recent post- secondary and high school graduates who were unable to find work due to COVID-19. • $1,250/4-week period for a maximum of 16 weeks, between May 10 and August 29, 2020. • Extra $750 (total benefit amount of $2,000)/ 4-week period, if they had a disability or dependents. • Visit Canada.ca for further details on CESB eligibility criteria. | • Yes, taxed as regular income • No tax withheld at source • The government will issue a T4A tax slip |
| Purpose & Benefit Amount | Taxable Income Receipt? |
|---|---|
| • Benefits employed/self-employed Canadians whose income is reduced by at least 50% due to COVID-19, and who are not eligible for EI benefits. • $1,000/2 week period, ($900 after taxes withheld) for 26 periods between September 27, 2020, and September 25, 2021. • CRB benefits will be clawed back by 50% ($0.50 for every $1) when recipients report net income in excess of $38,000 annually. • Visit Canada.ca for further details on CRB eligibility criteria. | • Yes, taxed as regular income • 10% income tax withheld at source • The government will issue a T4A tax slip reporting benefits received |
Canada Recovery Caregiving Benefit (CRCB)
| Purpose & Benefit Amount | Taxable Income Receipt? |
|---|---|
| • Benefits employed and self-employed Canadians who are unable to work because they must care for their child <12 years old or a family member who needs supervised care. This applies if their school, regular program, or facility is closed or because they are sick, self- isolating, or at serious risk of health complications due to COVID-19. • $500/1 week period, ($450 after taxes withheld) for a maximum of 26 weeks between September 27, 2020, and September 25, 2021. Only one eligible individual in the same household can apply for the benefit per week. • Visit Canada.ca for further details on CRCB eligibility criteria. | • Yes, taxed as regular income • 10% tax withheld at source • The government will issue a T4A tax slip reporting benefits received |
Canada Recovery Sickness Benefit (CRSB)
| Purpose & Benefit Amount | Taxable Income Receipt? |
|---|---|
| • Benefits employed/self-employed individuals who are unable to work because they are sick or need to self-isolate due to COVID-19 or have an underlying health condition that puts them at greater risk of getting COVID-19. • $500/1 week period, ($450 after taxes withheld) for a maximum of 2 weeks between September 27, 2020, and September 25, 2021. • Visit Canada.ca for further details on CRSB eligibility criteria. | • Yes, taxed as regular income • 10% tax withheld at source • The government will issue a T4A tax slip reporting benefits received |
Summary of T4A Slips reporting Federal COVID-19 Benefits
Canadian individuals will receive a T4A slip from the CRA if they received any of the COVID-19 emergency or recovery benefits during 2020:
• Canada Emergency Response Benefit (CERB) with the CRA
• Canada Emergency Student Benefit (CESB)
• Canada Recovery Benefit (CRB)
• Canada Recovery Caregiving Benefit (CRCB)
• Canada Recovery Sickness Benefit (CRSB)
Where an individual applied for the Canada Emergency Response Benefit (CERB) through Service Canada, such benefits will be reported on a T4E.
T4As and T4Es should be received by recipients by mid-March 2021 at the latest. As well, copies of the slips are available on My Account for Individuals portal on Canada.ca.
The COVID-19 benefit payment amounts reported on a T4A slip or T4E slip are taxable income receipts and must be reported by Canadian individuals on their 2020 Income Tax and Benefit Return.
